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Equity
Equity in real estate represents the remainder between the market value of the home and the sum owed to the lender. In other words, equity is the total money the owner would receive when selling the property and paying off the debt. The value of the home can increase over time as the market considers new aspects. Meaning that the owners share also increases.
Earnest Money
Earnest money is the buyer’s deposit payment for the property on sale. Earnest money is the assurance that the buyer will complete the purchase of the real estate. These deposits vary based on market demand and can reach up to ten percent of the property value.
Escrow
Escrow is the legal third-party company service. Thus, it includes safekeeping documents or immovables. Until all the conditions of the agreement are met the escrow company holds onto them. Otherwise, the escrow agent delivers papers to a rightful owner.